Case Dismissed for No Payment After We Filed a Motion to Dismiss the Complaint

The Debtor executed a debt-management service agreement with the Defendant and made payments to the Defendant pursuant to the agreement. When the Debtor filed for bankruptcy, the Plaintiff alleged that the agreement was not compliant with state law. The Plaintiff sought to recover the payments, or three times the total amount of the fees, charges, money, and payments as damages, and reasonable attorney fees and costs.

We argued that the agreement attached to the Complaint, on which Plaintiff principally relied, was an incomplete document. Even a cursory examination of the complete agreement controverted all Trustees’ state law allegations. We filed a motion to dismiss, asserting that the Complaint failed to state any factual allegations that could form a basis for the claim under § 548 of the Bankruptcy Code and state law.

We exchanged documents with the Plaintiff regarding the business transactions between the Debtor and the Defendant. The Court also granted our motion to dismiss the case, allowing the Plaintiff a grace period for filing a new amended Complaint.

However, the Plaintiff decided to dismiss the case voluntarily.

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